HomeMy WebLinkAbout2002-06-25 - AGENDA REPORTS - METROLINK PROPERTY ACQUISITION (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
DATE: June 25, 2002
City Manager Approval:
Item to be presented by:
SUBJECT: JAN HEIDT METROLINK STATION — NEWHALL PARKING LOT
EXPANSION, PROJECT NO. F2002; STPL-5450(012); E.A. 07-931507 —
PROPERTY ACQUISITION
DEPARTMENT: Transportation & Engineering Services
RECOMMENDED ACTION
1. City Council appropriate $384,000.00 from the Proposition A Local Return Fund Balance
to CIP Project No. F2002206-8001.
2. Authorize an expenditure in the amount of $384,000.00 from Account No. F2002206-8001
for the purpose of acquiring real property located at 22427 Market Street; and authorize the
City Manager or designee to execute all documents related to the property acquisition and
purchase agreement, subject to City Attorney approval.
BACKGROUND
Successful property acquisition is a major step toward completion of the Jan Heidt Metrolink
Parking Lot Expansion project and other amenities needed to meet commuters' parking
requirements. After months of negotiation by City staff, the current property owner, Anawalt
Lumber & Material Company, has agreed to settle for real property valued at $2,534,000.00,
which encompasses three contiguous parcels adjacent to the Jan Heidt Metrolink Station site
totaling approximately 4.79 acres that included an established retail business.
On February 22, 2002, the City prepared an offer letter to Anawalt Lumber & Material
Company in the amount of $2,150,000.00 for the entire property (three parcels, in fee simple
estate). Two separate deposits were made in the amount of $1,815,100.00 and $334,900.00 to
Los Angeles County Superior Court on April 9, 2002 and March 10, 1999, respectively.
Since the original station's construction, the City was successful in competing for and obtaining
Federal Transit Administration (FTA) funding toward right-of-way acquisition and construction
of the Jan Heidt Metrolink Parking Lot Expansion in the amount of $1,413,000.00. In addition
to FTA funding, the City has obtained additional federal funding through Caltrans for use
toward tenant relocation, design services, and additional property acquisition in the amount
of $545,345.00. To be eligible for reimbursement of the secured funding, the City was required
to meet federal/state right-of-way guidelines and hire two independent appraisals to determine
the Fair -Market Valuation (FMV) of the property.
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PROPERTY ACQUISITION
June 25, 2002 — Page 2
In December 2001, the appraised value from two independent appraisals was submitted to the
FTA and Caltrans for review and approval. The FMV of the property was determined to be
$2,150,000.00. As expected, the current property owner conducted his own appraisal, which
represented a value of $2,800,000.00 and pre -condemnation damages of $800,000.00. The
differences in the appraisal amount between Gary Anawalt and the City is $650,000.00, not
including pre -condemnation damages of $800,000.00.
With the FTA's recommendation for the acquisition of the property, City staff brought forth an
item for the City Council's consideration at their March 12, 2002 regular meeting. At that time,
the City Council approved the adoption of a resolution of necessity authorizing the City
Attorney to initiate condemnation proceedings to acquire the necessary right-of-way needed to
accommodate parking expansion at the Newhall Metrolink Station. This action further directed
the City Attorney to amend the previous Eminent Domain Complaint filed by the City in 1999.
After numerous meetings and negotiation by City staff and the City Attorney's office with the
property owner and his attorney, on or about June 3, 2002, the City was able to reach an
agreement for the settlement amount of $2,534,000.00 for the subject property.
Currently, there are tenants (JB Wholesale, Hydro-Scape Products, and SCV Pools) who have
a lease agreement at the property. Once possession of the property is transferred to the City,
the City will effectively become the landlord. The eventual relocation of the tenants will be
conducted per federal funding and acquisition requirements.
ALTERNATIVE ACTIONS
1. Upon receipt of an accepted offer from the property owner, the City Council may authorize
the City Manager to execute the purchase of the property located at 22427 Market Street,
subject to City Attorney approval. A copy of the offer package will be on file in the City
Clerk's reading file when it is available.
2. Other action as determined by the City Council.
FISCAL IMPACT
FTA will reimburse 80 percent of all eligible FTA costs associated with the project, including
those for land acquisition. STPL will reimburse 88.53 percent of all eligible STPL costs
associated with the project, including tenant relocation, design, and parking expansion
construction. The remaining funds needed to support this project are comprised of local match
funds provided by the City.
ATTACHMENTS
Exhibit "A" — Location Map
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